IGate profit beats in 3Q, revenue falls short
FREMONT, Calif. -- IGate beat third-quarter profit beat market expectations on better margins, but the information technology company said Friday that delays in contract renewals has slowed revenue growth.
The company, based in Fremont, Calif., earned $20.8 million, or 27 cents per share, for the quarter that ended Sept. 30. That's compared with $7.4 million, or 10 cents per share, in the same quarter last year. After adjusting for a number of special items in both quarters, it earned 46 cents per share versus 26 cents per share.
Revenue increased 2 percent to $271.1 million from $265.7 million.
Analysts polled by FactSet were expecting the company to earn 37 cents per share on an adjusted basis with revenue of $277.2 million.
IGate said volatile foreign exchange rates are an ongoing concern because of its worldwide operations. But management remained optimistic on the company's future, noting that its restructuring has proceeded according to schedule and that it has increased hiring in the U.S.
Shares of IGate Corp. fell 17 cents to $17.65 by midday, in line with broader market trends. IGate's shares remain on the higher end of the company's 52-week trading range of $12.45 to $19.97.